Corporations

Corporations aren’t just business entities - they’re powerful tools for building and preserving wealth. Whether your company retains earnings, holds passive investments, or provides group benefits, the right financial strategy can reduce taxes, protect stakeholders, and support long-term value.

At Green Helix Financial, we help corporations and their shareholders integrate investment, insurance, and tax strategies in a way that benefits both the business and the people behind it. From retained earnings to insured retirement strategies, we design smart, efficient solutions.

🧩 Example Scenario: Building Wealth Inside the Corporation

An incorporated professional services firm in Ontario retains passive earnings not required for daily operations. The owner wants to preserve and grow these funds tax-efficiently, provide a supplemental retirement stream beyond RRSPs, and reduce the eventual tax burden on their estate. They’ve heard of insured retirement concepts but haven’t implemented anything formal.

Here’s how a fiduciary advisor can help:

• Invest Corporate Capital Tax-Efficiently: Use conservative investment vehicles or segregated funds within the corporation to manage risk while limiting tax drag on passive assets.

• Introduce Insured Retirement Strategies: Design a permanent life insurance policy owned by the corporation (e.g., whole life) that accumulates tax-advantaged cash value. This cash value can later be accessed by the shareholder via tax-free loans to supplement retirement while the policy also funds estate taxes or equalizes inheritances.

• Reduce Passive Income Impact: Use corporate-owned insurance to move assets off the passive investment ledger, preserving access to the small business deduction and reducing annual tax exposure.

• Align Corporate & Personal Planning: Coordinate the corporation’s strategy with the shareholder’s TFSA, RRSP, and pension approach to ensure an integrated retirement income plan.

• Structure Tax-Efficient Exit or Wind-Up: Prepare the corporation to fund shareholder buyouts, transition to the next generation, or wind down with minimized tax implications.

• Review & Enhance Group Benefits: Evaluate current benefits and explore cost-effective upgrades to improve employee retention and manage disability or health risk.

• Protect the Business with Insurance: Recommend key-person coverage, buy-sell funding, or creditor protection strategies to strengthen business continuity.

By integrating insured retirement strategies into a corporate structure, business owners can use today’s retained earnings to create tomorrow’s income all without triggering unnecessary tax. It’s a powerful way to turn the company into both a growth engine and a legacy vehicle.